Published 8:15 am, Wednesday, August 3, 2011

President Obama's Environmental Protection Agency (EPA) continues to issue rules that probably will increase the cost of electricity in Texas, but will not increase health benefits.

EPA recently issued its final Cross-State Air Pollution Rule (CSAPR) that is not based on sound science and will result in additional federally mandated air emission regulations.

"EPA's own data showed Texas power plant emissions have no negative impact on downwind states," Texas Commission on Environmental Quality Chairman Bryan Shaw, Ph.D., said after learning of the action of EPA Region 6. "Therefore, EPA's decision to include Texas in the PM2.5 portion of the rule is not based on sound science and will result in additional federally mandated regulation of Texas's SO2 emissions that are not necessary for public health protection, and only result in negative consequences."

Given the lack of demonstration of environmental benefits in the proposal, the TCEQ looks forward to reading EPA's response to comments regarding the technical deficiencies and errors of the rule proposal, Shaw noted.

Furthermore, EPA failed to give sufficient or adequate notice regarding the potential details of Texas inclusion. The TCEQ requested a meeting with EPA Administrator Lisa Jackson on June 7 to address these issues, but the EPA did not respond. The TCEQ and PUC wrote a joint letter to White House Office of Management and Budget Administrator Cass Sunstein on June 9 asking that he fully consider the effects of this rule upon Texas.

The TCEQ is concerned this rule will result in significant increases in the cost of power as well as curtailment or shutdowns of existing coal-fired plants in Texas. Other sources of electricity will not compensate for these shutdowns, especially in light of the January 2012 compliance date.

Texas Public Utilities Commission noted that a large percentage of Texas coal-fired generation is lignite or lignite blended with Wyoming coal. Texas has approximately 18 plants, totaling over 11,000 MW of generation, that could be forced to add expensive equipment, further blend with more expensive out-of-state coal, or worse case, prematurely shut down, according to PUC.

This is expected to have far-reaching consequences on energy consumers, particularly elderly and low-income populations whose health and welfare are dependent on reliable energy, without which they would face increased incidences of heat stress, heat stroke, and death, Shaw said.

"For citizens to be protected from harmful pollution, both federal and state governments need to focus their resources on real risks, instead of creating false crises that frighten the public and misuse public resources," Shaw said.

Additionally, these regulations have indirect effects of higher costs associated with the cost of manufacturing goods and the potential for lost jobs as the American economy struggles to recover and compete in the global market.

Why would the Obama environmental team issue a regulation that has little if any benefit to the health of the public, but cause potential problems for such a necessary part of our economy, the electric generating utilities in Texas?

Alex Mills is President of the Texas Alliance of Energy Producers. The opinions expressed are solely those of the author.